As informed by APACS on their website, there are some FAQs or Frequenty Asked Questions that a person may have regarding his credit history with respect to the financial markets. His credit records tells about what he has been doing in the past, how reliable he is with respect to payment of his loans and how well is he suited for taking another credit card or mortgage or loan.
Here is a list of compiled common questions that anyone may have on Credit records while applying for credit cards.
Q Why do lenders undertake credit checks?
A When you apply for credit, for instance on a credit card, the card company will want to make sure you are capable of repaying any money you borrow and will only lend to you if they feel it is responsible to do so.
Q What is my credit score/rating?
A Your credit score or rating will be calculated by your lender to assess your credit worthiness. The higher your score the better. Different lenders and credit reference agencies may use different criteria so your credit rating may vary. This is why you may be rejected for credit by one lender and accepted by another.
Q What is a credit blacklist?
A There is no such thing as a blacklist. Your credit record only contains factual information. If you have been refused credit you should contact the lender concerned to find out why. Different lenders may make decisions based on different criteria and assessments of your credit record.
Q Can anyone search my credit report?
A No. Searches can only be made with your permission. This is given by completing a consent clause on your application form or verbally if you are applying for credit over the phone.
Q Who has access to information on my credit report?
A Only organisations who provide information to the credit reference agencies are entitled to look at the information held about you. They can only do this if you have given your permission.
Q How can I find out why my application for credit was turned down?
A Contact your lender. They will tell you whether this is because of your credit record or for some other reason.
Q How safe is my information?
A The credit reference agencies comply with the Data Protection Act 1998. They are also monitored by the Information Commissioner’s Office.
Q What information is stored about me and where it is stored?
A Most people have some type of credit agreement on a credit card, loan, mortgage or mobile phone account. Every lender stores information on credit agreements with one or more of the UK’s three credit reference agencies.
Every time you apply for new credit this information is used by the new lender to check your credit history or rating; to see how much you already owe and how well you’ve managed any previous credit. A lender can look at how many other applications for credit you have made recently and review publicly available
information held by the credit reference agencies. This includes whether you are registered on the electoral roll, if you have any court judgements against you or have been registered bankrupt.
Specifically a prospective credit card issuer will be able to see what outstanding loans, mortgages and credit card products you have. They will be able to see what cards you have, what the credit limit is on those cards and what the current outstanding balance is, as well as whether regular repayments are being made on that card.
If you apply for a card with someone you already have a financial relationship with (e.g. mortgage, current account), they will have access to additional information about your financial behaviour.
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